If you have $500 yourself, what does y=1.1 mean for a portfolio with P and F? What would you think the CAL is going to look like if investors cannot borrow at the risk free rate, but have to at a higher rate? How to solve for the tangent portfolio P* in Excel Solver? Given the n risky assets, choose W1, W2,..., W, to: Max Sharpe ratio [E(rp)-[4]/Op Subject to: Wi+W2+...W=1) Q: why not restrict the E(ro)= a certain value here? No